BicBanco Raises $130m

Brazilian mid-sized bank BicBanco has priced $130m in 2010 dollar-denominated bonds at par with a coupon of 7%. Demand reached $150m, according to a bank official, but the deal was held at $130m to maintain the 7% yield. Demand came almost entirely from US and European buyers, with very small number of Asian buyers. Proceeds will fund the bank’s working capital. Banco do Brasil and Banco Votorantim managed the sale. BicBanco, rated BB-/Ba1, went on a roadshow via UBS in January, but put off a deal due to market volatility. Fellow mid-size Brazilian Banco Fibra priced $150m in 2-year notes Fibra at 99.534 with a 6.750% coupon to yield 7.000% last week. Banco Cruzeiro do Sul is set to launch a similar transaction as soon as next week.